American Airlines extends B737 Max cancellations until June 9 April 2019

An Ethiopian Airlines Boeing 737 Max 8 sits grounded at Bole International Airport in Addis Ababa

Airlines are continuing to ground 737 Max planes, with American Airlines announcing an additional 5,000 cancellations on Monday. Bank of America (BAC) downgraded its rating for the stock to "neutral" from "buy", saying that disruptions in 737 Max deliveries would last longer than it had anticipated earlier.

A total of 346 were killed in the October 29 crash of Lion Air Flight 610 and the March 10 crash of Ethiopian Airlines Flight 302, both of which involved Boeing's new 737 Max 8 jet.

The Boeing 737 Max crisis is a tragedy that has cost 346 lives.

Boeing saw its stock plummet on Monday after admitting fault in two recent deadly plane crashes involving its 737 Max jets. "If the production drop lasts 3-6 months, then this implies a relatively minor US$150 million to US$250 million sales impact".

Meanwhile, in statement released late Thursday last week, Ethiopian Airlines Aviation Group acknowledged the preliminary report of the accident, saying the report clearly showed that the Ethiopian Airlines pilots at the helm of ET 302 on 10 March followed the Boeing-recommended and FAA-approved emergency procedures to handle the most hard emergency situation created on the airplane.

Investors were anxious that the troubles will be a hit to Boeing's 2019 earnings due to fewer-than-anticipated deliveries.

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Boeing has appeared tone deaf at times as the crisis surrounding the 737 MAX has intensified, but cutting production is the right move.

Starting in mid-April, Boeing said, it will cut production of the plane to 42 from 52 planes per month so it can focus on fixing the flight-control software that has been implicated in the two crashes. "Accordingly we believe suppliers will not be able to accommodate any Boeing request", Ciarmoli said.

"As the investigation continues, Boeing is cooperating fully with the investigating authorities", the company said in a statement.

The company's aerospace unit has a large exposure to the Max program, and according to Wolfe Research, Boeing accounted for 31 per cent of sales for Collins Aero a year ago, spread across commercial and military segments. These announcements break with a tradition of accepting the certification of the company's home regulator, in this case the US Federal Aviation Administration.

The Texas-based airline, that previously canceled some of its flights until the end of April 2019, said it would "contact affected customers directly by email or telephone" for rebooking. PT Garuda Indonesia had already initiated steps to cancel a $4.8 billion order because its customers don't trust the plane.

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